🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Morgan Stanley Starts 'Unique E-commerce Platform' Coupang at Overweight

Published 06/30/2022, 04:38 AM
© Reuters.
CPNG
-

Morgan Stanley (NYSE:MS) analysts Seyon Park and Kelly Kim initiated Coupang (CPNG) with an Overweight rating in a note to investors Wednesday, stating it is "a unique e-commerce platform now at a discount."

"We believe Coupang's dominant position, with its fulfillment and logistics infrastructure, makes it a unique asset which should support further market share gains and generate cash flows. A share price correction has made valuations compelling," the analysts wrote.

Morgan Stanley set an $18 price target on the stock, explaining the South Korean e-commerce firm has a "dominant lead in logistics infrastructure to drive sustained market share gains."

"We believe the company's early, aggressive investments in fulfillment and logistics give it a clear competitive edge over peers, which should allow it to continue to gain share in Korea's still fast-growing e-commerce market. We forecast GMV to grow at a 15%four-year CAGR, to US$55bn by 2025, implying market share grows to 34% from 24% in 2021."

The analysts also stated the "pivot to profitability indicates positive EBITDA likely to be faster and sharper than consensus," while at "today's US$23bn market capitalization, the growth and profitability hurdles the stock needs to meet to justify valuations are looking much more feasible."

"On our estimates, the shares are trading at 32x 2024 and 14x 2025 EV/EBITDA, which positions it well versus global peers."

Coupang shares rose over 2% Wednesday.

By Sam Boughedda

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.